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Arithmetic Average vs Geometric Average

byAccountantonMarch 24, 2011

Arithmetic Average vs Geometric Average? One of our accounting tutors was having a debate with one of his students on which is a better measure of an average. After the debated, he pinged us to check what we think. We have an opinion but wanted to check what you think –Arithmetic Average vs Geometric Average?

Tell us what do you think? What do you prefer to use arithmetic average or geometric average? Its fair game to use arithmetic average on certain occasions and the geometric average on other occasions and if you do that tell us that too..

Leave a comment or better still email us. We are a little old fashioned!

Update: Some of you are wondering whats the difference between the Arithmetic Average vs Geometric Average? Well give you the update.